Building Vibrant Solar Thermal Markets

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1 Building Vibrant Solar Thermal Markets RETScreen and SHW Policy across the US Neil Veilleux Meister Consultants Group

2 Solar Hot Water and Renewable Markets Source: IEA, 2009 data

3 Solar Hot Water Markets - International Source: IEA (2007) Source: EIA, 2008 data

4 Solar Water Heating Markets - US and Europe Solar Water Heating Total Capacity in Operation (MWth) United States MWth Top 3 EU markets (Spain Austria Germany) Source: SEIA, 2009, Weiss et al., 2009, EurObserv ER 2009

5 China s Growing Market Share of newly installed glazed collector capacity, 2008 Source: EIA Solar Heat Worldwide Source: Paradigma

6 U.S. Solar Thermal Market Applications Solar Thermal Collector Shipments by Type ( ) Source: EIA, 2010

7 US State/Region Solar Water Heating Markets Source: Les Nelson (Western Renewables Group)

8 RETScreen Solar Hot Water Analysis Five project model analyses Energy Model Cost Analysis Emissions Analysis Financial Analysis Risk Analysis

9 Using RETScreen to Promote Vibrant SHW Market Development 1. Lowering Upfront Costs through Incentives Flat rebate or performance based incentive? Example: NYSERDA Solar Hot Water Rebate 2. Managing Design Requirements Sizing systems to hot water load Example: Pennsylvania Sunshine Rebate Program 3. Educating Consumers Communicating customer value Example: Midwest Renewable Energy Association (MREA)

10 NYSERDA s Solar Hot Water Program 1. Lowering Upfront Costs through Incentives NYSERDA targeting 600% increase in SHW installations over 5 years 45 megawatts of solar thermal capacity over 5 years $24 million in incentive funding Provides rebates of to cover 15-20% of cost of installation ($1.50/kW) for projects displacing electricity Estimated production-based rebate Requires simulated software performance assessment such as RETScreen to calculate rebate Estimated performance-based rebate

11 NYSERDA Performance Assessment Input: system design Solar thermal system/manufacturer production estimates Size (gallons) Total annual electric usage Hot water portion of usage Displaced by solar thermal (not to exceed 80% of hot water) ST system efficiency Input: costs and incentives Output: RETScreen estimated savings and performance ($ & kwh) Incentive = $1.50/kWh offset

12 Pennsylvania, PA Sunshine Rebate Program 2. Managing Design Requirements Pennsylvania offers customers a flat rebate RETScreen analysis must be submitted to size solar thermal system Solar thermal installation performance data will be estimated using the RETScreen model. System installers will be required to provide the department with a RETScreen estimate for each installation.

13 Sizing Solar Hot Water Systems & RETScreen Primary Approaches to sizing systems 1. Rules of Thumb (ASHRAE) 2. Utility Bill Analysis 3. Pre-metering

14 Midwest Renewable Energy Association (MREA) 3. Educating Customers Provide renewable energy site assessments to educate customer Over 175 site assessors operating across the region Site assessments required for Wisconsin wind projects Highly recommended for solar projects RETScreen tutorial videos: t

15 Midwest Renewable Energy Association (MREA) System Specs: Recommended Gross Size of Collector Area Recommended Gallons of Solar Storage Recommended Mounting Location Collector Pitch Collector Orientation Percentage Free of Shade Recommended Routing of Pipe Runs Estimated Total Pipe Run Length (one way) Interior Length Exterior Length Estimated Production of System Estimated Energy Offset by the System Estimated Percentage of Solar Contribution to the Load Estimated Greenhouse Gas Reduction Financial Inputs: Square Feet of Collector Anticipated Cost of System Focus on Energy Cash Back Reward Federal Tax Credit Other Financial Incentives Estimated End System Cost Estimated Installed Cost Range Low End of Range High End of Range

16

17 Other State Programs Using RETScreen? Connecticut Solar Thermal Rebate Program Colorado Solar Thermal Performance Contracting Grant National Grid (Massachusetts) Solar Hot Water Incentive New Hampshire Solar Thermal & Electric Rebates Texas Energy Conservation in State Buildings Wisconsin Focus on Energy Solar Thermal Grants

18 Neil Veilleux Meister Consultants Group

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